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The PCE index rose by 0.3 % in August compared to the previous month, while the Fed's preferred core PCE index rose by 0.2 %, in line with Wall Street expectations. On an annualized basis, headline inflation climbed to 2.7 %, still above the Fed's target of 2%. Core inflation remained at 2.9 %. Despite the slight rise in inflation, the data calmed the markets as it was not hot enough to deter the Fed from further rate cuts. Two interest rate cuts of 25 basis points each are still expected by the end of the year, which would mean a key interest rate of 3.5 - 3.75 %.<\/p>\n\n\n\n
Good chances for continuation of the upward trend in the Dow Jones\u00a0<\/h2>\n\n\n\n
Although the Dow Jones Index is now in overbought territory and despite the seasonally weak month of September, there has been hardly any selling pressure on the equity markets in recent days and weeks. A correction of a few percentage points would not be unusual after such a strong rally. The fact that the Dow is only correcting moderately can therefore be seen as a sign of strength. The chances of a rapid continuation of the trend without a correction at the price level are therefore quite good. Nevertheless, it is advisable to take a look at the next important support levels in order to be prepared in the event of a continuation of the correction.<\/p>\n\n\n\n
Important support at 45,000 points<\/h2>\n\n\n\n
The next important support zone is around the 45,000-point mark. The Dow failed to reach this price zone four times in the last 12 months before breaking out above the technical resistance in August.<\/p>\n\n\n\n The resistance that has been overcome is thus reversing its function and should provide strong support in the event of a correction. If the correction continues in the coming days and weeks, it is therefore advisable to pay attention to this support and observe whether new buyers enter the market again (reversal signals, buying under increased volume).<\/p>\n\n\n\n If the support at 45,000 points does not hold, the correction could conceivably extend to 44,000 points, where another important support zone is located. <\/p>\n\n\n\n In addition to the Dow Jones Industrial Average, there is currently an interesting technical development in the Dow Jones Transportation Average. The signals in the transportation index often serve as a leading indicator for the Dow Jones Industrial Average. On the following daily chart you can see that the transportation index is moving in a very narrow trading range between 15,475 and 15,865 points. In addition, the contraction of the Bollinger Bands is a clear signal for the decline in volatility. A breakout above the upper or below the lower Bollinger band would therefore be an important signal and very likely lead to the creation of new momentum. <\/p>\n\n\n\n Between the end of August and mid-September, the transportation index was relatively weak compared to the industrial index; however, the transportation index performed comparatively well in the last trading week with an increase of 0.8 %.<\/p>\n\n\n\n![\"A](\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/09\/2025-09-29-Dow-Jones-Wochenchart-1024x601.png\")
Dow Jones Transportation Index on the verge of a breakout?<\/h2>\n\n\n\n
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